After a single-day rebound of over 5%, Tesla suddenly encountered unfavorable news: recalling over 1.8 million vehicles in the United States

According to the financial news app Zhitong Finance, the National Highway Traffic Safety Administration (NHTSA) of the United States announced on Tuesday local time that Tesla (TSLA.US) is recalling over 1.8 million electric vehicles in the United States due to the risk of the Tesla software system not being able to detect unlocked engine hoods. It is understood that an unlocked engine hood can fully open and obstruct the driver's view, increasing the risk of a collision. Just before this bearish news was released, Tesla's stock price surged over 5% on Monday under bullish sentiment.

Tesla has already started rolling out airborne software updates to detect whether the engine hoods of various models of electric vehicles can respond to being opened, and has sent notifications to customers, as stated in a recent declaration by NHTSA.

The US regulatory agency stated that this large-scale recall by Tesla applies to certain Model 3, Model S, Model X from 2021-2024, and Model Y from 2020-2024. Tesla mentioned that these vehicles are all equipped with engine hood latches produced by Magna Closures Co Ltd. in China.

The electric vehicle leader stated that since March, the company has been investigating customer complaints about certain Model 3 and Model Y vehicles in China accidentally opening their engine hoods, and has initiated the retrieval of latch hardware and a comprehensive inspection of in-use vehicles.

Although such incidents are relatively rare in Europe and North America, Tesla mentioned that the company began engineering research in Europe and North America last month to inspect engine hood latch components, and decided earlier this month to issue a potential recall order.

Previously in June, Tesla recalled over 11,000 Cybertrucks in the United States mainly due to some minor issues with the windshield wipers and exterior decorations.

This recall is the largest one for Tesla since announcing the recall of up to 2.03 million domestic electric vehicles in the United States in December last year (covering almost all Tesla vehicles on US roads at that time), with the main purpose of installing new safety measures in the Tesla Autopilot system.

However, after receiving reports of 20 accidents involving updated Autopilot electric vehicles, the NHTSA has launched an investigation, stating that they have found "several issues" related to the recall.

Morgan Stanley lists Tesla as its top automotive stock, reiterates a target price of up to $310

Tesla announced its worst quarterly profit margin in over five years last week, highlighting the challenges faced by this electric vehicle manufacturer in the face of a slowdown in electric vehicle demand in a high-interest rate macro environment.

The Wall Street giant Morgan Stanley has replaced Ford with Tesla, listing Tesla as its top automotive stock in the US automotive industry, and believes that Tesla's stock price still has up to a 40% upside potential, reiterating an "overweight" rating on Tesla stock and a target price of up to $310. Boosted by this news, Tesla's stock price broke free from last week's 8% decline to $219.80 and closed up 5.6% overnight on Monday Analysts at Morgan Stanley pointed out that Tesla, which is in an absolute leadership position in electric vehicles, is actively shifting resources, technology, talent, and capital from the electric vehicle manufacturing sector to other emerging technology development areas. At the same time, analysts at Morgan Stanley observed that Ford (F.US) discussed electric vehicles far more than Tesla during the second quarter earnings call, which may reflect the increasing industry focus on electric vehicles, with Tesla already in a leading position.

Morgan Stanley stated that Tesla, as the global leading electric vehicle manufacturer, has made significant progress in recent years in sales growth, product innovation, production capacity expansion, and charging network construction, strengthening its competitive advantage in the industry.

In their report, Morgan Stanley analysts mentioned that the commercial opportunities for artificial intelligence in non-automotive fields may be larger and faster in application than autonomous driving vehicles. They believe that the commercial potential of Tesla's humanoid robots may even surpass autonomous driving vehicles and attract more capital investment